Substack launched in 2017 as a platform that allows writers to create their own newsletters and manage paying subscribers. Unlike some of its biggest rivals, Substack takes a 10 percent cut of total subscription revenue. That tax may not seem substantial at first, but it quickly adds up as creators gain subscribers and begin charging more for their subscriptions. A calculator on Substack's own website estimates that for a newsletter charging $10 per month with 400 subscribers, the total monthly cost -- including the platform's 10 percent cut and credit card processing fees -- would add up to $636. That cost jumps to $15,900 per month with 10,000 subscribers and skyrockets to $79,500 per month for 50,000 members -- nearly $1 million per year.
Many Substack rivals charge a flat monthly fee, rather than a commission. Ghost, an open-source platform for blogs and newsletters, starts at $15 per month with 1,000 members for website creation, email newsletter capabilities, and a custom domain. Beehiiv, a creator platform with tools for launching a newsletter, website, and podcast, is free for up to 2,500 subscribers with limited access to certain features, like a built-in ad network, while its other plans vary in price based on subscriber count. A person with 10,000 subscribers, for example, will pay $96 per month for Beehiiv's "Scale" plan. There's also Kit, a newsletter platform that offers a tiered pricing model similar to Beehiiv, costing $116 per month with 10,000 subscribers on its "Creator" plan. It's not just the 10% fee critics are complaining about; they also argue the platform offers limited customization and third-party integrations compared to some of the mentioned alternatives, heavily promotes its own branding and social features, and makes creators more dependent on its ecosystem.
Beehiiv founder Tyler Denk argues that creators should be able to build their own brands without the platform taking center stage: "We don't want to take credit for the work of our content creators." While writers can export subscribers, content, and some payment relationships, they cannot take Substack "followers" or Apple-managed iOS billing data with them.
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